Akorn Reports First Quarter Results; Discusses 1998 Outlook.

LINCOLNSHIRE, IL--(BUSINESS WIRE)--April 29, 1998--

Income Rises to $0.06 Per Diluted Share

Sales Up 36 Percent

Gross Profit Up 82 Percent

Akorn Inc. (NASDAQ:AKRN) today announced results for the first quarter ended March 31, 1998.

Net income for the quarter was $1.0 million or $0.06 per diluted share, compared to a net loss of $577,000 reported for the comparable 1997 quarter. Excluding one-time charges for relocation and certain changes in accounting estimates, first quarter 1997 earnings were $471,000, or $0.03 per share. Sales for the quarter totaled $12.1 million, a 36 percent increase over sales of $8.9 million reported for the quarter ended March 31, 1997.

The company said current quarter profits were higher due to a more profitable product mix, including acquired products, and greater manufacturing plant operating efficiencies.

Commenting on the results, John N. Kapoor, chairman and chief executive officer, said, "Successful execution of our niche product strategy has resulted in growth in both the Injectable and Ophthalmic Divisions. We continue to focus our business development efforts on adding complementary products to our portfolio through acquisition or internal development."

Since the beginning of 1998, Akorn has announced the acquisitions of five products and an exclusive licensing arrangement for an additional product. These acquisitions included ophthalmic products Paremyd, Ocusert Pilo-20 and Pilo-40 and injectable products Sufenta and Alfenta. The Ocusert acquisition also included non-exclusive rights to the drug delivery technology for all ophthalmic applications. Akorn obtained exclusive distribution rights to Biolon, a high-viscosity viscoelastic solution, from Bio-Technology General.

Review of Results:

Net sales for the quarter ended March 31, 1998 were $12.1 million, up 36 percent over last year's $8.9 million. Gross profit increased 82 percent to $6.2 million from $3.4 million. Gross margins increased to 52 percent from 39 percent in the comparable prior year period, primarily as a result of product acquisitions, improved manufacturing efficiencies and a higher-margin product mix.

Outlook:

R. Scott Zion, general manager of the Ophthalmic Division, stated, "Ophthalmic Division sales increased 14% for the quarter, reflecting our increased national accounts presence as well as product acquisitions. The Division continues to evaluate both proprietary and multisource products for development or acquisition. These combined marketing and development efforts should fuel continued growth through 1998."

Floyd Benjamin, president of Taylor Pharmaceuticals Inc., Akorn's Injectable Division, added, "Injectable sales increased 74% for the quarter, reflecting strong sales of acquired products. Favorable product mix has resulted in gross margins of 57%. The division's product development pipeline contains numerous multisource and proprietary products. The Injectable Division expects continued growth in 1998."

Akorn Inc. manufactures and markets sterile ophthalmic and injectable pharmaceuticals, and markets and distributes an extensive line of pharmaceuticals and ophthalmic surgical supplies and related products.

The information contained in this news release, other than historical information, consists of forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Such statements regarding the timing of acquiring and developing new products, of bringing them on line and of deriving revenues and profits from them, as well as the effects of those revenues and profits on the company's margins and financial position, is uncertain because many of the factors affecting the timing of those items are beyond the company's control. -0- This release is available on the KCSA Worldwide Website at www.kcsa.com -0-

                              Akorn Inc.
                  CONSOLIDATED STATEMENT OF EARNINGS
               (In thousands, except per share amounts)
                             (unaudited)

                             Three Months Ended March 31,
                             1998                   1997
Net sales:
  Ophthalmic               $ 6,480                $ 5,676
  Injectable                 5,571                  3,193
Total sales                 12,051                  8,869
Cost of sales                5,809                  5,441
Gross profit                 6,242                  3,428

Selling, general and
  administrative             3,745                  2,558
Research and development       728                    361
Relocation charges              --                  1,451
Operating income (loss)      1,769                   (942)
Interest & other income
  (expense), net              (189)                    25
Pretax income (loss)         1,580                   (917)
Income taxes                   532                   (340)
Net income (loss)          $ 1,048                 $ (577)

Per share:
  Net income (loss)-basic   $ 0.06                $ (0.03)
  Net income (loss)-diluted $ 0.06                $ (0.03)

Weighted average shares
  Basic                     17,686                 16,592
  Diluted                   18,582                 16,592

CONTACT: Akorn Inc., Lincolnshire

Rita McConville, Chief Financial Officer

847/236-3851

or

KCSA Worldwide

Paul Holm/Joseph A. Mansi

212/682-6300 ext. 201/205